Weekly petroleum pricing coming in August, says P.E.I. commission
CHARLOTTETOWN, P.E.I. —
Islanders can expect more price fluctuations in fuel products for the rest of the summer.
The Island Regulatory and Appeals Commission (IRAC) has decided to move to weekly pricing for the next two months.
Beginning Friday, Aug. 9, price adjustments on gas, diesel, and furnace oil will take effect at 12:01 a.m. every Friday.
Propane prices will be set every second Friday, starting Aug. 16.
The decision came as a result of recent price volatility in petroleum products caused by market fluctuations beyond normal, said IRAC.
The commission expects that moving to weekly pricing will provide a price to consumers, and the industry, that more accurately reflects the market price of petroleum. In the past year, commodity prices on the New York Mercantile Exchange have experienced wide fluctuations causing large swings in the wholesale price of petroleum in Atlantic Canada.
The commission intends to avoid unscheduled price adjustments with weekly pricing and, in doing so, provide more price certainty to consumers and retailers.
In the past four months, seven unscheduled price adjustments occurred as a result of market volatility. In 2019, the price of gas has fluctuated from a low of 99.1 cents per litre in January to a high of 134.6 cents per litre in April.
This will bring P.E.I. in line with the other Atlantic Provinces which set petroleum prices on a weekly basis.